On the evening of September 6th, EVE Energy announced that its wholly-owned subsidiary, EVE ENERGY US Holding LLC (referred to as "EVE USA"), intends to sign a "LIMITED LIABILITY COMPANY AGREEMENT" with ELECTRIFIED POWER HOLDCO LLC (referred to as "Electrified Power"), DAIMLER TRUCKS & BUSES US HOLDING LLC (referred to as "Daimler Truck"), and PACCAR INC (referred to as "PACCAR"). They plan to jointly invest in establishing a joint venture company in the United States, which will invest in and build battery production capacity.
The joint venture company will be established simultaneously by all parties or initially by one or more parties designated by all parties, with other parties making additional capital contributions. The total maximum capital contribution limit of the joint venture company shareholders is $2.64 billion, of which EVE USA's cash contribution limit is $150 million, holding a 10% equity stake in the joint venture company; Electrified Power, Daimler Truck, and PACCAR have a cash contribution limit of $830 million each, holding 30% equity stake each, and will purchase all or most of the products produced by the joint venture company.
Notably, the joint venture company's production of batteries will primarily be used in commercial vehicles. EVE Energy explicitly mentioned this in the announcement, stating it will be "mainly applied in the designated North American commercial vehicle sector."
Additionally, EVE Energy's collaboration model is similar to that of CATL and Ford. The joint venture company will obtain licenses from EVE Energy or its subsidiaries for the development, manufacturing, and commercialization of licensed products and will pay licensing fees as agreed upon.
Secures New Designation for Electric Vehicle Batteries
On the morning of September 7th, EVE Energy announced that on September 6th, its subsidiary, EVE Power, signed a memorandum of understanding with RIMAC TECHNOLOGY d.o.o. (referred to as "Rimac"). Rimac has designated EVE Power for bulk production and supply of batteries for electric vehicle battery production under the agreed project. EVE Power has accepted this designation.
Rimac is a company registered in Croatia, specializing in the design, development, production, and supply of high-performance battery systems, electric drive units, control systems, and energy storage solutions. It is a leading provider of global original equipment manufacturers and high-performance automotive technology solutions.
In addition to the collaboration on the designated project, the two parties will expand their strategic cooperation to other projects and efforts of EVE Power and Rimac in the future.
Full Steam Ahead
Throughout this year, EVE Energy has continued to strengthen its presence in both power batteries and energy storage batteries. The company has achieved outstanding results in various aspects, including capacity construction, customer expansion, installation performance, product portfolio development, and business performance.
In terms of capacity construction, in China, EVE Energy has successfully initiated power and energy storage battery projects in cities such as Qujing, Jingmen, and Jianyang, with a total capacity of 103 GWh and a total investment of CNY 26.3 billion.
Overseas expansion has also progressed smoothly. On June 8th, EVE Energy confirmed an investment of no more than CNY 9.971 billion in the Debrecen Power Battery Factory in Hungary, which will mainly produce cylindrical batteries for passenger cars and is expected to be completed by 2026. On the same day, a land purchase agreement was signed for the cylindrical battery factory in Malaysia at a price of CNY 254 million. On July 27th, it was announced that a memorandum of understanding was signed with Energy Absolute Public Company Limited to jointly establish a joint venture company in Thailand to build a battery production base with a capacity of at least 6 GWh.
With the addition of the battery production capacity invested by the joint venture company mentioned earlier, EVE Energy will have a total of four overseas battery bases.
In terms of customer expansion, including the designation from Rimac, EVE Energy has secured three major overseas battery contracts this year. The other two contracts come from Powin and American Battery Solutions, with a total supply capacity of 23.389 GWh.
Furthermore, EVE Energy's current order backlog is substantial. The 46 series large cylindrical battery has already received intended orders from domestic and foreign automakers totaling approximately 472.31 GWh over the next five years. The new generation square-shaped lithium iron phosphate super-large energy storage battery, LF560K, has already received intended customer demand of over 140 GWh within five years.
With strong customer demand and differentiated positioning, EVE Energy's installation performance and performance in the first half of the year have been impressive.
According to SNE Research data, EVE Energy ranked 8th globally in power battery installation with 8 GWh of global power battery installation in January-July this year, accounting for a 2.2% market share.
Moreover, EVE Energy achieved the fastest year-on-year growth rate among the top 10 global power battery installations with a growth rate of 150.9%, far surpassing the second-fastest, BYD, at 94.1%.
According to InfoLink data, EVE Energy ranked third globally in energy storage cell shipments in the first half of this year.
Thanks to the continuous comprehensive growth in shipments, in the first half of this year, EVE Energy achieved operating income of CNY 22.976 billion, a year-on-year increase of 53.93%, and a net profit attributable to the parent company of CNY 2.151 billion, a year-on-year increase of 58.27%.
EVE Energy's goal is to achieve annual revenue of not less than CNY 70 billion in 2023. With approximately CNY 23 billion in revenue in the first half of the year, whether it can achieve the CNY 47 billion revenue target in half a year remains to be seen. It is worth looking forward to.
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